The following is not an objective of National Stock Exchange (NSE).
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Providing efficient product market using limited Communication system
Option (1) Establishing a nationwide trading facility for all types of securities — An objective of NSE (Incorrect). Investors anywhere in the country can trade on it.
Option (2) Meeting international standards — An objective of NSE (Incorrect). NSE aimed to meet international benchmarks and standards.
Option (3) Enabling shorter settlement cycles — An objective of NSE (Incorrect). Trades are settled faster, along with book entry settlements.
Option (4) Providing efficient product market using limited Communication system — Not an objective of NSE (Correct). The objective is a fair, efficient and transparent securities market using an electronic trading system, with equal access for investors across the country through an appropriate communication network. NSE deals in securities, not products, and a limited communication system would defeat its purpose.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. NCERT (Pre-rationalised Edition): “OBJECTIVES OF NSE NSE was set up with the following objectives: “OBJECTIVES OF NSE … c. Providing a fair, efficient and transparent securities market using electronic trading system. |